On 27 July 2010, the Assembly of Kosovo approved Law No. 03/L-209 on “Central Bank of the Republic of Kosovo”.
The Central Bank of the Republic of Kosovo (CBK), successor to the Central Banking Authority of Kosovo, is a public legal entity based on Articles 11 and 140 of the Constitution and the provisions of this law, having administrative, financial and managerial autonomy.
The objectives of the CBK according to the law in force are:
1. The primary objective of the Central Bank is to foster and maintain a stable financial system, including a safe, sound and efficient payment system.
2. An additional objective of the Central Bank, which is subordinated to its primary objective, is to contribute to achieving and maintaining domestic price stability.
3. Without prejudice to attainment of these objectives, the Central Bank supports the general economic policies of the Government.
4. The Central Bank acts in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources.
The tasks of the Central Bank in pursuit of the objectives set by the law in force include to:
1. determine and implement financial system stability policy including oversight of a deposit insurance scheme, conducting market operations, and providing emergency liquidity;
2. regulate, license, register and supervision financial institutions as further specified in this law or any other law;
3. promote and oversee safe, sound and efficient payment, clearing and securities settlement systems;
4. ensure an adequate supply of banknotes and coins in Kosovo;
5. hold and manage the international reserves;
6. collect and publish statistics;
7. contribute to achieving and maintaining domestic price stability;
8. inform the Assembly of the Republic of Kosovo, the Government and the general public about its policies, tasks and operations as further specified in this law;
9. act as a banker, financial advisor and fiscal agent for the Government and any public bodies and public organizations of Kosovo;
10. cooperate with and participate in international councils and organizations concerning matters within its area of competence; and
11. carry out any ancillary activities incidental to the exercise of its tasks under this law or any other law.
Within the competencies defined by law, the Central Bank, the members of the Central Bank’s decision-making bodies or staff, shall not take instructions from any other person or entity, including government entities. The independence and autonomy of the Central Bank shall be respected at all times and no person or entity shall seek to influence the members of the decision-making bodies or the staff of the Central Bank in the performance of their tasks or to interfere in the activities of the Central Bank.